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Violations of the UCC

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Question to all the legal types out there....

If a creditor violates UCC what are the penalties and where is it listed?

This applies to repos primarily for example:

Acceptance of collateral as discharge of obligation In any other case involving consumer goods or any other collateral, a secured party in possession may, after default, propose to retain the collateral in satisfaction of the obligation.

This tells me that teh OC shouldnt report as a repo on our CR's. Am I wrong? What does the above sentence mean?


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The UCC is a set of laws that a group of attorneys drafted to try to provide uniformity across the United States. However, it is up to each state to decide whether to adopt the Code. Most have, but you must check your own state law to make sure it has adopted the UCC without any changes. I will post a link below where you can go to see if your state has done so.

I am not a UCC expert, but I believe the issue under state law would be whether a creditor who has accepted collateral in satisfaction of a debt may sue to recover any "deficiency" if the sale of the collateral does not yield enough to fully cover the debt.


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